1 AIT Asian Institute of Technology

Cross-border electricity trade: opportunities and challenges for Bangladesh

AuthorHaque, H. M. Enamul
Call NumberAIT RSPR no.ET-18-11
NoteA research study submitted in partial fulfillment of the requirements for the degree of Master of Engineering in Energy, School of Environment, Resources and Development
PublisherAsian Institute of Technology
AbstractEndowment of regional vast low carbon-based hydropower resources; continuation of overwhelming economic growth with growing new power demand; development of electric supply reliability and affordability are the key drivers of importing power by Bangladesh. Such factors can be achieved alternatively by integrating the power sector across Bangladesh, Bhutan, India, and Nepal (so called BBIN). This study focuses the perception of stakeholders to identify and analyze barriers and potentials of CBET in the context of Bangladesh. Theses stakeholder groups were representatives from public organizations, Independent power producers’ association, academics, geo-political experts and research institutes. A well-structured planning method SWOT analysis (strength, weakness, opportunity, threat) in combination with Analytical Hierarchy Process (AHP) is used to identify the factors and prioritize them based on ranking. Finally, the strategies for enhancement of CBET is formulated using TOWS matrix. A total of seven strategies are proposed. These are: (i) signing Tri-country CBET agreement and joint development of crossborder power projects; (ii) making strategic alliance with public and private sector entities of Nepal, Bhutan and India’s private trading licensees; (iii) using grid swap deals as a strategic negotiation tools to grant access to Indian power grid; (iv) emphasizing electricity import from continued declining tariff of renewable energy sources; short-term power exchange to meet seasonal and temporary demands; (v) diversifying power import by source country; (vi) minimizing geo-politics risk on electricity trade; and (vii) minimizing the risk of CBET’s tariff volatility by signing fixed term contract for long-term PPA. To achieve these strategies, it will require meticulous planning, political will, sustained leadership across BBIN sub-region.
Year2018
TypeResearch Study Project Report (RSPR)
SchoolSchool of Environment, Resources, and Development (SERD)
DepartmentDepartment of Energy and Climate Change (Former title: Department of Energy, Environment, and Climate Change (DEECC))
Academic Program/FoSEnergy Technology (ET)
Chairperson(s)Dhakal, Shobhakar;
Examination Committee(s)Salam, P. Abdul;Phdungsilp, Aumnad ;
Scholarship Donor(s)Asian Institute of Technology Fellowship;


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